Question: Check my work 6 ints Establishment Industries borrows $810 million at an interest rate of 7.7%. Establishment will pay tax at an effective rate of
Check my work 6 ints Establishment Industries borrows $810 million at an interest rate of 7.7%. Establishment will pay tax at an effective rate of 21%. What is the present value of interest tax shields if: a. It expects to maintain this debt level into the far future? (Enter your answer in millions of dollars rounded to 1 decimal place.) b. It expects to repay the debt at the end of 6 years? (Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 2 decimal places.) c. It expects to maintain a constant debt ratio once it borrows the $810 million and Assets = 10%? (Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 1 decimal place.) oBook Ask Print References b. Present value Present value Present value million milion million G. 20
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